Leading maker of chips for cell phones reports big rise in profits and better than expected sales.
April 14, 2004: 4:19 PM EDT
NEW YORK (CNN/Money) - Texas Instruments, the leading supplier of digital signal processors used in cell phones, reported sharp gains in first quarter sales and earnings as consumers continue to gobble up cell phones and other electronics devices using TI's chips.
Earnings came in line with Wall Street's expectations and sales were slightly higher than forecasts. TI raised its earnings and sales guidance for the quarter in March.
The Dallas-based company reported net income of $367 million, or 21 cents a share, an increase of 214 percent from earnings of $117 million, or 7 cents a share a year ago.
TI's sales rose 34 percent from a year ago, to $2.94 billion, slightly higher than the Wall Street consensus estimate of $2.9 billion.
Shares of TI (TXN: Research, Estimates) fell 30 cents, or 1 percent, to $28.68 in regular trading on the New York Stock Exchange Wednesday. The stock has fallen more than 7 percent during the last week, following a sales and earnings warning from Nokia, TI's largest customer.
Based on TI's strong results though, fears of a spillover effect from Nokia appeared to be for naught.
"TI's strong wireless growth from the year-ago period continued to outpace the industry's handset shipments, which we believe reflects the company's increasing content per phone," said TI chairman and CEO Tom Engibous in a statement.
TI also gave a rosy second quarter outlook, saying that sales should be in a range of $3.085 billion to $3.325 billion. Analysts were expecting revenue of $3.06 billion. The company also said it expects earnings to be between 23 cents and 26 cents a share. The consensus estimate was 23 cents.
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